#China #Beijing #financial results #Uxin Limited #used car retail

Uxin Reports Significant Growth in Used Car Transactions Amidst Market Challenges

Uxin Limited, the premier used car retailer in China, has recently reported its unaudited financial results for the quarter ending June 30, 2026. In an environment characterized by price fluctuations and competitive pressures, Uxin has demonstrated resilience and significant growth across several key metrics.

Financial Highlights

For the quarter, Uxin achieved a transaction volume of 21,899 units, marking a 20.3% increase from the previous quarter and an 88.7% surge compared to the same quarter last year. This growth is primarily driven by a strong retail transaction volume of 19,610 units, reflecting an 18.6% increase sequentially and a striking 88.8% year-over-year increase.

Total revenues for the quarter reached RMB 1,151.2 million (approximately US$169.7 million), which is up 7.2% from RMB 1,073.7 million in the earlier quarter and an impressive 74.9% increase from RMB 658.3 million in the same period last year.

The gross margin, however, saw a decline to -0.7%, down from 7.0% in the last quarter and 5.2% in the same period last year, mainly due to rapid declines in used car prices influenced by aggressive pricing in the new-car sector. The loss from operations ballooned to RMB 151.9 million (US$22.4 million) during this time.

Management Commentary

Kun Dai, the Founder, Chairman, and CEO of Uxin, commented on the challenging market conditions, stating, “Despite a sharp decline in used car prices during the second quarter of 2026, our retail transaction volume reached 19,610 vehicles, up 89% year over year. Our focus remains on improving store-level performance and enhancing overall operational efficiency.”

The company's approach to managing inventory amid fluctuating prices involved urgent sales through adjusted pricing strategies, which, while pressuring short-term profitability, facilitated a quicker alignment with market demands.

Feng Lin, Uxin's CFO, reported that total revenue from retail vehicle sales amounted to RMB 1,080.8 million (US$159.3 million), reflecting a 6.5% increase from the last quarter, driven by a significant increase in retail transactions. He highlighted that operating margins would likely improve as market volatility stabilizes and operational efficiencies increase.

Inventory and Operational Strategies

Uxin's strategic actions have included launching a new superstore project in Tianjin, which commenced operations in March 2026 and contributed to increased inventory levels and sales. This past quarter saw enhancements in the company’s pricing strategies and inventory turnover rates, which are expected to yield better profitability moving forward.

As Uxin looks ahead, the company foresees retail transaction volumes ranging between 20,500 to 21,000 vehicles for the third quarter of 2026. Furthermore, they anticipate total revenues to be between RMB 1,160 million to RMB 1,190 million, with expectations for the gross profit margin to bounce back above 6.0%.

Future Outlook

Uxin continues to leverage its omni-channel strategy, integrating online and offline sales channels to reinforce its market presence while responding to evolving consumer needs. The company’s commitment to customer satisfaction is evident from its net promoter score remaining above 65 for the ninth consecutive quarter.

In summary, Uxin Limited is demonstrating a robust growth trajectory in the used car market despite facing significant challenges. As they implement strategic measures to navigate through these turbulent times, stakeholders remain optimistic about the company's future performance and resilience.

For more insights, Uxin’s management will host a conference call on September 24, 2026, to discuss these results and the company’s future strategies in detail.